Manu explains Break Even Analysis and its relevance in evaluating businesses for term loans to new probationary officer, Vinu, using a practical example with numbers. Manu: Absolutely, Vinu. Break Even Analysis is a financial tool that helps businesses determine the point at which their revenue will...
A Guide to Letter of Credit for New Bankers Vinu, the new Probationary Officer at the bank, has just received a file to work on regarding a Letter of Credit. As he is unfamiliar with this particular banking procedure, he seeks the guidance of Manu, a Senior Banker with extensive knowledge and experi...
Why Cash Flow Analysis Matters: Explained by Manu to Vinu Manu: Sure, Vinu. Cash Flow Analysis is the process of analyzing the inflow and outflow of cash in a business over a specific period. It's important because it helps businesses understand their cash position, which is critical for their survi...
Start by examining the company's assets, which are listed in order of liquidity. This means that the items listed first are the ones that can be easily converted into cash. Look at the current assets, which include cash, accounts receivable, and inventory. These are the assets that the company expec...
Understanding Special Purpose Vehicles scroll down A Special Purpose Vehicle (SPV) is a subsidiary company created by a parent company for a specific purpose or activity. SPVs have their own legal status, assets, liabilities, and financial transactions, separate from the parent company. In this blog...